Yuka consumes mangos and oranges. She is given four mangos and three oranges. She can buy or sell mangos for $ 2 each. Similarly, she can buy or sell an orange for $ 1. If Yuka has no other source of income, draw her budget line and write the equation.
Answer to relevant QuestionsChange Q& A 4.1 so that Lisa’s budget and the price of pizza double, but the price of burritos remains constant. Show how her budget constraint and opportunity set changes. Is Lisa necessarily better off than before these ...Lucas chooses between water and all other goods. If he spends all his money on water, he can buy 15 thousand gallons per week. At current prices, his optimal bundle is e1, where he buys both types of goods. Show e1 in a ...Some of the largest import tariffs (taxes on only imported goods) are on shoes. Strangely, the tariff is higher on cheaper shoes. The highest U. S. tariff, 67%, is on a pair of $ 3 canvas sneakers, while the tariff on $ 12 ...Suppose that for the production function q = f( L, K), if L = 3 and K = 5 then q = 10. Is it possible that L = 3 and K = 6 also yields q = 10 for this production function? Why or why not? Using the figure in the Mini- Case “A Semiconductor Isoquant,” show that as the firm employs additional fixed- proportion technologies, the firm’s overall isoquant approaches a smooth curve similar to that in panel c ...
Post your question